Recently, the field of stablecoins has ushered in a major breakthrough. USDC issuer Circle has successfully landed on the U.S. stock market, and its stock price performance has far exceeded expectations, attracting close attention from global institutions to the stablecoin track. For a time, system giants such as Walmart, Amazon, JD.com, Ant Group, etc. have also made plans to launch their own stablecoins, and the stablecoin track has become a global focus.
In this feast of stablecoins, TRON, as the core trading infrastructure in the field of stablecoins, has an admirable foresight in its early bets on the stablecoin track. In addition to actively expanding USDT, TRON announced at the beginning of this year that it would upgrade its native decentralized stablecoin USDD to version 2.0. Today, USDD has been developing rapidly in the TRON ecosystem with its excellent performance and wide application. It has become the second largest stablecoin in the ecosystem after USDT, occupying an important position.
For the majority of users, in the ups and downs of the crypto market, stablecoins have long surpassed the scope of traditional trading intermediary tools. Users are more concerned about how to achieve wealth appreciation from stablecoins while ensuring security.
TRON, which has always been at the forefront of the industry, naturally and keenly captures the needs of users. It cleverly combines USDD with DeFi applications such as JustLend DAO and Sun.io in the TRON ecosystem to create a lazy income plan that can be called a cryptocurrency fund, setting off a win-in-stability income revolution. Regardless of the market ups and downs, users who deposit USDD in JustLend DAO can enjoy stable annualized returns, opening a new chapter of steady wealth growth.
USDD, the “hard currency” of TRON ecosystem
In the field of stablecoins, TRON has become the first choice for stablecoin development with its leading ecological advantages. Even the highly anticipated USD stablecoin USD1 supported by the Trump family has successfully started its minting journey on its network on June 11. As the native stablecoin of the TRON ecosystem, USDD is naturally an important step in its strategic layout in the field of stablecoins.
USDD is a completely decentralized stablecoin that is fundamentally different from traditional stablecoins. It can operate without relying on centralized institutions and is strictly anchored to the US dollar at a 1:1 exchange rate through an over-collateralization mechanism. This decentralized and over-collateralized feature makes USDD highly transparent and stable, winning the favor of many users and investors.
USDD plays an important role in the TRON ecosystem. It can not only circulate across chains and participate in various DeFi activities to earn profits for users, but more importantly, USDD has successfully entered the practical field of the real world and is used in physical retail scenarios.
On June 5, TRON announced a partnership with AEON. Through AEON Pay, a payment tool owned by AEON, users can now use TRX, USDT, and USDD, native assets in the TRON ecosystem, to scan and pay at offline stores. This move makes USDD no longer just a stable currency in the crypto world, but also builds a bridge between the real and virtual worlds. Its practicality and wide acceptance are regarded by many users as a well-deserved hard currency.
USDD was originally an algorithmic stablecoin of the TRON ecosystem. In January this year, it underwent a major upgrade and was officially upgraded to USDD 2.0. This upgrade is a qualitative leap. Compared with previous versions, USDD 2.0 introduces a deeply optimized and carefully polished collateral mechanism and realizes a completely decentralized governance model. In the new version, the control of the minting mechanism is completely handed over to the community. Users can deposit collateral according to their own needs and customize the collateral rate to mint new USDD. This highly autonomous minting method not only enhances the democracy of decentralized governance, but also improves the efficiency of fund use, allowing users to participate in the ecological construction of USDD more flexibly.
Currently, there are three main ways to obtain USDD. The first is over-collateral casting, which currently supports TRX, sTRX, USDT and other high-quality crypto assets as over-collateral casting USDD; the second is to use the PSM exchange tool to directly exchange USDT for USDD; the third is to purchase directly on the exchange, which currently supports platforms such as HTX, Bybit, MEXC, BingX and others.
(One is to mint USDD by over-collateralizing TRX, sTRX, and USDT)
(Second, use the PSM tool to directly exchange USDT for USDD)
In terms of minting fees, USDD has launched a series of preferential reduction activities, which have brought tangible benefits to users. On June 15, USDD launched a new round of preferential minting fees. During the event, the stability fee rate of TRX-A, TRX-B and TRX-C vaults with different collateral rates and minting fees was uniformly reduced to 0.5%, and the stability fee of the sTRX-A vault was also significantly adjusted from the original 3% to 1%. The promotion ends on July 15. This preferential measure greatly reduces the cost of users to mint USDD, stimulates users enthusiasm for minting, and encourages more people to participate in the USDD ecosystem.
In terms of usage scenario expansion, USDD has been deeply integrated into multiple DeFi applications in the TRON ecosystem. Users can easily participate in a wider range of DeFi ecosystem activities such as lending, staking, and trading to earn more income. Obviously, USDD has become an indispensable hard currency in the TRON ecosystem, injecting strong impetus into the development of the entire ecosystem.
As of June 18, the issuance of USDD has exceeded 431 million, ranking third in the over-collateralized decentralized stablecoin track (the top two are SKY (formerly Maker DAO)s DAI and USDS). Among them, the assets pledged by the USDD fund pool have exceeded US$466 million, with a collateral ratio of about 108%.
Stablecoin USDDs three major income paths are tested: risk-free income starts at 6% annualized
In the context of market volatility, how to obtain stable returns through stablecoins has become the focus of many investors. In January this year, USDD launched the USDD Earn staking income activity. Users can earn interest by simply storing USDD stablecoins on JustLend DAO, with an initial maximum return of up to 20%. However, the returns will decrease in stages as the amount of deposited funds grows. All returns will be issued in the form of USDD stablecoins and subsidized by TRON DAO.
As of June 18, the USDD Earn staking activity has entered its fifth phase, which will cover DeFi protocols JustLend DAO and multiple exchanges such as HTX and GATE. According to the current tiered structure, the annualized yield of USDD on JustLend DAO is about 6%, and the annualized yield on cooperative exchanges can be as high as 10%.
Based on the rate of return, participation method, and DeFi protocol involved, the ways to earn income can be classified into the following three categories:
Path 1: Risk-free demand deposit, yield 6% + (deposit USDD → earn interest immediately)
The operation is extremely simple: directly store USDD on the JustLend DAO platform to earn interest income, and the current risk-free annualized return is about 6%. This model allows deposits and withdrawals at any time, just as flexible as depositing money into a banks current account. It is risk-free, the principal is absolutely safe, and the amount is not limited. The operation is flexible and convenient, which is very suitable for investors who pursue stable returns. Skys USDS real-time storage rate APY is only 4.5%, and DAIs real-time APY is only 3.25%.
Path 2: Yield Amplifier for TRX holders, with an annualized return of 15% + (sTRX staking + USDD interest)
Users stake TRX as sTRX on the JustLendDAO platform, then stake sTRX to mint stablecoin USDD, and deposit the minted USDD on the JustLendDAO platform to earn interest. In this way, TRX can get double returns of sTRX staking income and USDD storage income. In the past 7 days, the sTRX staking income was 8.34%. The USDD deposit income was about 6%, and the TRX-sTRX-USDD currency-based income was about 15%. If a continuous cycle (TRX-sTRX-USDD-TRX) is adopted, the cumulative income of TRX currency-based income is greater than 20%.
Path 3: 0 cost exchange + flexible investment (Sun.io: PSM + SunSwap)
This is achieved through the two functions of SunSwap and PSM exchange on the one-stop trading platform Sun.io. SunSwap supports the use of USDD to purchase any assets, such as SUN and JST of the TRON ecosystem, to further expand investment channels; and the PSM exchange tool supports a fixed ratio exchange of 1:1 between USDD and stablecoins such as USDT/USDC/TUSD, and the transaction has an excellent experience of 0 slippage and 0 handling fees.
If users hold USDT/USDC/TUSD, they can use PSM to exchange it for USDD. After the exchange, USDD can be used to purchase any token on SunSwap, or directly participate in the USDD Earn storage income activity on JustLend DAO.
